In general, the bottleneck of social media is moderation. Big servers get that problem, a lot of small community servers don't. At the same time, that's when the resilience of decentralization really kicks in. By default the dominant idea of the internet and VC for the last 25 years is and was "big is beautiful" and the more followers I have the more important and valuable I am.
The fedi should and actually wants to be something different.